AT&T reportedly raising another $2.9B, outlines DirecTV cost savings

A day after AT&T (T-0.7%) sold $2B worth of 30-year U.S. bonds to help pay for the DirecTV (DTV-0.1%) deal, Bloomberg reports the company is selling $2.9B worth of euro-denominated bonds with 10 and 20-year maturities.

Assuming no funds are used to repurchase debt, the offerings stand to raise AT&T's debt load to the ~$85B range. DirecTV, meanwhile, has $20.8B of its own debt, partly offset by $5B in cash/investments.

Separately, in an 8-K outlining its case for the acquisition, AT&T declares content costs eat up 60% of U-verse's revenue, and that DirecTV's scale will lower those costs by ~20%. $1.6B/year worth of total synergies are expected 3 years after the deal closes.

AT&T also claims the deal will allow it to provide gigabit fiber services (previous) to 2M more locations, and that it plans to offer TV/broadband bundles in Latin America with the help of DirecTV's spectrum, which covers 43M homes in Brazil, Argentina, Peru, and Colombia.